The New York-based hedge fund Paulson & Co. has started acquiring distressed mortgage-backed securities (MBS) and other debt that is draining banks of liquidity. According to a recent Bloomberg News:http://www.

President Obama’s broad proposal for financial regulatory reform calls for the creation of a new regulatory body, the Consumer Financial Protection Agency. The federal supervisor would have far-reaching oversight and enforcement authorities over the entire residential mortgage financing industry.

Nicholas Barrett & Associates , a mortgage default law firm based in East Providence, Rhode Island, has been named a 2008 Summit Award winner by Lender Processing Services (LPS) for maintaining perfect timeline and performance expectations for 12 consecutive months in foreclosure and bankruptcy transactions.

The New York Federal Reserve Bank purchased $20.29 billion in mortgage-backed securities (MBS) from government agencies this week. The central bank has committed to buy up $1.25 trillion in mortgage securities this year.

President Obama signed into law the Helping Families Save Their Homes Act on May 20, 2009. Among other things, the law amends the Truth in Lending Act (TILA), instituting a requirement that borrowers be notified when their mortgage debt has been sold, transferred, or assigned to a new creditor.

Despite the fact that lenders in California are voluntarily postponing the majority of foreclosure sales – 73 percent, to be exact – ForeclosureRadar says its market data reveals a steady increase in the number of foreclosed homes in the state sold at auction.

The Treasury Department said this week that Making Home Affordable servicers have extended 150,000 loan modification offers to distressed homeowners, and about 55,000 borrowers are already enrolled in the three-month modification trial.

A recent study conducted by a national real estate company and American Home Shield, a home warranty company based in Memphis, Tennessee, found that homes offered with warranty protection sold an average of 23 days faster than homes with no warranty coverage.

Title Alliance, Ltd. , headquartered in Media, Pennsylvania, announced on Wednesday that it has acquired America Land Title Affiliates, LLC. America Land Title Affiliates is made up of a group of Realtors in the Akron, Ohio area, each producing over $2 million per year.

According to the Center for Responsible Lending (CRL), the impact of the foreclosure crisis not only has devastating consequences for the displaced households, but in its wake, the spillover effect is eating away at the value of nearby homes by startling sums.